BG Group and Keppel Offshore & Marine have secured the license to supply liquefied natural gas (LNG) bunker to vessels in the Port of Singapore, with the first delivery of LNG bunker expected to commence in 2017.

The two companies will form a joint alliance to deliver an end-to-end bunkering solution using LNG sourced from BG Group’s diversified LNG portfolio.

This new venture further builds on BG Group’s existing role as the exclusive aggregator for Singapore’s first three million tonnes per year of LNG demand. The partnership with Keppel aims to build on the corporation’s expertise in offshore rig design, the construction and repair of ships and specialised ship building.

Michael Chia, Managing Director (Marine and Technology) of Keppel Offshore & Marine, said, “The move into LNG bunkering is in line with Keppel’s strategy to provide solutions for the global LNG market, and we are happy to be able to partner BG Group in this exciting new venture. As the exclusive gas aggregator for Singapore, BC Group has the experience of importing LNG into Singapore.”

“Together with Keppel’s years of experience and expertise in servicing vessels including gas carriers, we will be able to give strong support to MPA in its goal to develop Singapore into a key LNG bunkering hub in Asia.”

Following the start of commercial operations at Singapore LNG Corporation’s LNG terminal in May 2013, BG Group has delivered 72 cargoes into Singapore from its global LNG portfolio.

This new development follows a recent rule-tightening strategy from Emission Control Areas (ECAs) to minimise airborne emissions, such as sulfur oxides (SOx) and other particulate matter. It is expected that these enforcements could be the spark for greater marine emissions restrictions worldwide in the future, creating a higher demand for LNG as a shipping fuel.